Hi guys! I'm new here. I don't know much about cars, but after doing research I decided that I really want to buy a Honda Fit. This will be my first car. I know I want the LX model with CVT in white.

My question is... How much is the minimum for a down payment? I'm currently saving money and I don't want to go to the dealership until I have enough saved. I heard I have to have enough for taxes and insurance and everything, too. It seems kind of daunting. Also generally what do you recommend for a down payment?

I guess what I'm trying to figure out is approximately how much money I will need to have on hand for fees and everything to drive off the lot..? Thanks guys, I know this is an extremely noob post.

 

I would say at least 2,000-3,500 to cover taxes, title, etc although it's possible to walk out without putting anything down if your credit is decent which they will may persuade you to do so they can get more interest out of you. So the largest down payment possible is in your own best interest.

 

i did $0 down also, the sales taxes. my fico score that they pulled was 789 at the time, which probably helped, and i was 22 when i bought the car - the only thing i actually had to pay out of pocket was NC registration which was a couple hundred bucks, but not due for a few months after receiving the car, after i had gotten the permanent license plate.

 

Don't forget about the prospect of being upside down on your loan. The down payment helps keep you from owing more than the vehicle is worth, hopefully.

 

absolutely - if going $0 down, gap insurance is definitely something worth investing in

 

If you get a loan with State Farm (there may be some others) GAP coverage is free

 

I generally don't do anything down, but I also tend to keep cars a long time so being upside down on the loan isn't really a problem (making sure the insurance coverage is there of course) for me. Your credit will go a long way in determining what and if you have to do anything down. If you think that you will only have the car a few years and then trade/sell, then being upside down could be a consideration and a reason to put some down.

The good news is that the Fit seems to hold value well and that seems to be holding true with the new ones as well so even if you are upside down to start, it probably won't stay that way for too long.

 

Thanks for all the replies! I'm 25, have excellent credit and will be driving in Los Angeles. I do plan to have the car for a long time, maybe 5-10 years max. I just used a calculator on the CA DMV website and it looks like I will be charged 9% sales tax plus over $200 in other fees.

I read something recently about a "destination fee" for transport of the vehicle that could be upwards of $800! Did all of you pay that? And is it an upfront charge?

 

All of the registration, taxes, delivery fee, etc. can be rolled into the loan. You generally don't have to pay anything up front if your credit is good.

You will end up paying interest on all of those things of course, but it's entirely possible to walk out of the dealership without writing a check. Best thing to do is just go in and talk to them when you're ready. The more you can put in on the down payment the better, it will lower the loan amount you're paying interest on.

Don't let them upsell you on a bunch of dealership add ons. If you can turn a screwdriver you can just buy them online at a much lower cost and install them yourself. The instructions they come with are generally very good and if you get stuck you can always ask us

 

My personal goal/rule is to pay a 100% down payment. I realize that may not always be practical or possible for everybody, but financing the least amount practical is IMHO generally a good idea. I'd rather drive a beater around for a couple of years than have a big car loan.

The destination fee is generally part of the purchase price of the car in terms of financing, though it may be listed as a separate line item. According to the Honda web site, the destination charge is $820.

Tax laws vary from state to state. In many states (well, I think in many—certainly in Vermont), you owe sales/use tax only on the difference between any trade-in and the price of the new vehicle. (This is true, again at least in Vermont, even if you sell the old vehicle on your own; it doesn't need to be traded at the dealer.)

It certainly is possible sometimes to finance everything and not have to pay anything up front, or only pay the first month's payment up front. You might also want to check the rates and deals offered by your bank or credit union (or other local banks/credit unions). It may or may not be better than the dealer will give you. Having your financing lined up in advance does limit some of the tricky things the dealer can hit you with in terms of fiddling about with loan terms and rates and such; it's easier to stick to haggling over the actual vehicle price. If you're financing with them, they sometimes try to dicker based on the monthly payment rather than the price of the car.

 

I drove an old car in, left it and some signatures at the dealership when I left.

I got the good interest rate, and gas + payments were only a little bit higher than gas alone- so my only real added expense was putting my plates on it.

 

It's all based on your credit situation.

Right now on the lot I have 6 Manual Trans fits LX and EX models. 1 EX-L with Nav, 3 EX and 2 LX CVT.

Let me know if I can be of any help, I'm here in the Inland Empire.

 

I went $0 down for 6 years with gap, but I will pay the car off in 3 so the interest wont kill me. If you cant pay off the car in 3 years then I suggest $5k down on a 5-6 year deal.

I am going to use around $1500 from the other car I sold to upgrade my 15 Fit.

Gluck